Where do you exchange your foreign currency and how can you get higher exchange rate?

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It is good to have some foreign currency at your own hands since when the rates goes up, you can exchange it for higher local currency and use it in your own country. However, banks will always have service charge and the exchange rate tends to be not as good as the other exchange services along the street or inside the shopping mall. On the other hand, those exchange services will not be as safe as the bank since they will probably give you some fake currency and some bad guys will always stand on the spot and follow you along the way in order to rob your money as well. Thus, it is hard to say which one is the best exchange place for foreign currency. What do you think? Share with us?